4. Production, Costs & Revenue (AQA A Level Economics)

Increased output results from specialisation and the division of labour because they enable

Table 5 contains data for a firm’s marginal cost of producing different outputs of shirts per day. The firm operates in a perfectly competitive market.

                                                                     Table 5

If the market price is £10 per shirt, at which one of the following outputs per day,
A, B, C or D, will the firm maximise its profit?

The table below shows how a firm’s total cost of producing handbags changes as output increases.

What is the average fixed cost of producing 3 000 handbags per month? 

The UK’s labour productivity increases by only 10% over a five year period.  Over the same period its main trading partners increase their productivity by 25%. All other things being equal, the most likely consequence for the UK is 

The table below shows how a firm's total and average product change, in the short run, with different inputs of labour.

Diminishing marginal returns to labour set in when the firm employs 

A firm benefits from significant and persistent economies of scale as it increases output. Which one of the following is the most likely consequence as it grows in size? 

The firm’s 

A firm employs three factors of production: capital, land and labour. The table below shows how the firm's output is affected by changing the amount employed of these factor inputs.

The firm experiences constant returns to scale when it increases its output from 

The table below shows possible differences between the meanings of the terms invention and innovation. Which combination, A, B, C or D, correctly identifies the difference between the meanings of these terms?

The table below shows the output, average total cost and average revenue for a firm.

 
At which one of the following levels of output will the firm maximise its profits? 

The marginal revenue product of labour is the

In the United States, corporate profits since 2010 have averaged 9% of GDP, compared to 5% in the 1990s. This is causing concern that the US economy is increasingly dominated by companies with monopoly power

Explain the role of profit in a market economy